Is IDEXX Laboratories (IDXX) a Smart Long-term Buy?

Baron Partners Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Partners Fund returned 47.15% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell Midcap Growth Index was up 9.37%. You should check out Baron Partners Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Baron Partners Fund highlighted a few stocks and Idexx Laboratories Inc (NASDAQ:IDXX) is one of them. Idexx Laboratories Inc (NASDAQ:IDXX) is a veterinary services company. Year-to-date, Idexx Laboratories Inc (NASDAQ:IDXX) stock gained 75.1% and on December 4th it had a closing price of $457.15. Here is what Baron Partners Fund said:

“Shares of veterinary diagnostics leader IDEXX Laboratories, Inc. contributed to performance in the quarter. Veterinary visits continued to exhibit a “V” shaped recovery from the initial pandemic-related slowdown, with visits growing at double-digit rates. IDEXX’s competitive trends are outstanding, and we expect new proprietary innovations and field sales force expansion to be meaningful contributors to growth. Margins are increasing significantly. We believe margins can exceed 30% over time.”

Last month, we published an article revealing that Polen Capital Management is bearish on Idexx Laboratories Inc (NASDAQ:IDXX) stock. The investment firm exited its position as the company reached a $31 billion market cap, more than 3x the weighted average market cap of the portfolio.

In Q2 2020, the number of bullish hedge fund positions on Idexx Laboratories Inc (NASDAQ:IDXX) stock increased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Idexx’s growth potential. Our calculations showed that Idexx Laboratories Inc (NASDAQ:IDXX) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.